Your B & B Business and SCA

New Payment Security Measures that WILL Affect Your Business

SCA (Strong Customer Authentication) measures have now come into force as part of the Payment Services Directive II (PSD 2), a European law that all UK banks will be using (and yes this will remain in effect despite Brexit) to prevent fraud.

What does this mean? Overall these measures will significantly improve the security of payments. Sadly Some of the OTAs have misrepresented the situation for their own gain. It is important to note that SCA ONLY applies to cards typed in online by the customer, all other card transactions are exempt so you can continue payments in exactly the same way you did prior to SCA.

What’s ’strong’ about it?
The ’strong’ in ’Strong Customer Authentication’ means that the person using the card online has passed at least two of three ’proof points’ confirming they’re the owner of the account.

Those three points are:
Knowledge (knowing Password or PIN)
Possession (having their card or phone with them)
Inherence (being able to prove their identity through fingerprint or facial recognition).

Direct bookings via your website’s booking engine:
These are relatively straightforward, at the point of booking online the card issuing bank will now ask your guest for 2 of the 3 security points so you will be certain the payment was made by the owner of the card. Stripe and FabPay will take SCA details and confirm the identity of the card holder for you.

Channel bookings from Online Travel Agents (OTAs):
Where you get the customer’s card from the OTA this will be exempt from SCA. Any payments you take from the card will be Card Not Present (CNP) or Mail Order Telephone Order (MOTO). These transactions are treated by the banks in the same way as they were before SCA so there is no change at all.

In the same way as channel bookings, payments where you type the card into a terminal or virtual terminal don’t fall under the new SCA measures as they are a Card Not Present (CNP) or Mail Order Telephone Order (MOTO) payments, that is to say they are exempt from SCA. These transactions are treated by the banks in the same way as they were before so there is no change.

Here at freetobook we offer property owners a number of secure payment options including Stripe and FabPay all of which are 100% SCA compliant for all types of payment.

 

 

FabPay – Payment Gateway for accommodation providers

Low cost pay as you go credit card payments

At freetobook we have created a low cost, pay as you go credit card handling system for UK accommodation owners.

Low Cost Card Payment
Credit Card Payment

FabPay offers full integration with your freetobook booking system, saving time and money when you switch to FabPay.

With FabPay, taking payments is no longer a complicated drawn out task. Just click the button and the payment is on it’s way to your bank !

Key Benefits:

1) Simple and quick – card payments made in seconds.

2) Secure and PCI compliant, all transactions are made on the SagePay gateway.

3) Simple to setup – You can run FabPay alongside your existing card payment system, no need to change.

4) NO monthly costs and NO tie in period, simply pay as you go.

5) Cost neutral, you can make a small charge to your customer for card handling so it costs you nothing.

6) It’s all connected, your online and phone payments are shown in each booking.

FabPay vs PayPal
FabPay vs PayPal

Many smaller properties use PayPal for card transactions, this could be very expensive compared to FabPay. If you are paying PayPal 3.4% on a debit card this could cost you £10.20 on a £300 booking. With FabPay a debit card transaction costs only 22 pence + a max gateway fee of 75 pence, a total of no more than 97 pence using FabPay. Massive saving !

The same £300 payment from a personal credit card with FabPay would be 1.35% + gateway fee i.e. £4.05 + 75 pence = £4.80 still less than half the price of PayPal. Click here for full cost comparison of FabPay vs PayPal

With FabPay there is a one off setup fee of £69. Credits are then bought to pay for each transaction (gateway fee). The more credits you buy the cheaper each transaction is (payment).

The most you ever pay is 75 pence but it you are using a larger number of transactions you could be paying as little as 24 pence per payment (gateway fee).

Find out more about FabPay at www.fabpay.com

Existing customers of freetobook can easily register for FabPay low cost payment system in Tab”Plus” and SubTab”FabPay” – start saving today !

If you do not yet use the freetobook Internet Booking Engine find out more at www.freetobook.com